The CSR strategy

In times when organisations are trying to save every penny, it may be difficult to make an argument for corporate social responsibility (CSR). Sure, it’s important to volunteer time and money to charitable causes, but any initiative that doesn’t help the bottom-line these days can get struck off the priorities list fairly easily.

Many employers who are familiar with this hesitance – something that occurs even in stable economic climates – give up on adopting or improving current CSR practices. However, Richard Welford, co-founder, CSR Asia, has reasons to be optimistic. In his experience, more companies are now seeing CSR as more important than ever, particularly as experts discover the roots of many companies’ troubles.

“There has been a recognition that poor governance led to some bad decisions in some companies,” says Welford. Over the past twelve months, this has become a very important part of the CSR agenda in both struggling and thriving organisations.

In areas where the economic downturn has intensified poverty, experts are beginning see the social value in the private sector – with its ability to offer wealth generation and employment opportunities. It’s the well-known concept of ‘helping people to help themselves’. Through more community investment strategies, this initiative has gained momentum. It has also replaced traditional philanthropy as a means of boosting company reputations and brands.

Despite the ripe circumstances for highlighting the importance of CSR, Welford still has his work cut out for him. Involvement from HR is crucial to enable CSR initiatives to work strategically for the organisation. But getting the all-important buy-in from HR is often a challenge.

It is also difficult – though necessary – to leverage staff resources within organisations to contribute to community investment programmes. Welford says the key here is to encourage employee volunteerism through meaningful initiatives that bring both community and business benefits.

The last challenge, Welford says, is to champion diversity both within the organisation and externally. While this may come as a surprise to some HR, Welford says it is not always easy to create a diverse workplace where everyone is valued for what they bring to the company. Championing diversity is just one dimension of this appreciation, he says. Companies must also see it as a strategic asset linked to innovation and creativity.

“Many companies actually destroy diversity and therefore find it difficult to retain staff,” Welford says. However, the situation does not need to remain as such if HR is ready to find solutions.

Building the bridge

Leadership from the top can help to steer HR departments towards being more socially aware. But changes still need to be implemented and then maintained. If there is no ongoing continuous improvement, HR and CSR will never be appropriately linked.

But why is it necessary to build a bridge between HR and CSR? There are a number of reasons for employers to embrace and advocate social responsibility in their companies. To begin with, employees already see CSR as an HR initiative which goes beyond the walls of the organisation. Strengthening this relationship sends a clear message to employees: they are part of an organisation which takes the time and effort to remember and serve their community.

Strategic CSR is therefore very much tied up with effective and fair HR practices, Welford says. Issues such as sound employment practices, fair wages, non-discrimination, equal opportunities, diversity and inclusion are all important areas to consider.

“Good employment practices are central to good CSR,” Welford reminds HR professionals. In his HR Summit presentation, he plans on demonstrating just how HR functions can be maximised through structured and effective CSR practices. “We know that people want to work for companies that they can trust and respect and we will examine how CSR strategies can help in this respect.”

A professor at the University of Hong Kong, Welford doesn’t just deliver information – he advocates and convinces. Conference delegates will learn about their role in making a difference from a speaker who is a veteran in social justice work. They may also be inspired to change HR policies to work in tandem with CSR – a partnership which Welford believes will continue to benefit companies for years to come.